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Minimum Advertised Pricing (MAP): The Silent Battleground in Competitive Strategy
Posted By OctopusIntell 287 days ago on all
https://www.octopusintelligence.com -
Minimum Advertised Pricing (MAP) seems simple. Manufacturers set a floor price. Retailers can’t advertise below this price. But dig a little deeper, and you’ll see MAP isn’t just about price control. It’s a strategic lever in the competitive landscape. Here’s why MAP matters from a competitive intelligence and market analysis perspective:
1. MAP Is a Proxy for Market Power
If a brand can enforce MAP effectively, it signals strong control over its distribution channels. Brands with weak market power can’t set prices for retailers. If they try, they risk pushback or losing those retailers. Consistent MAP adherence among retailers shows that the manufacturer has a strong influence.
1. MAP Is a Proxy for Market Power
If a brand can enforce MAP effectively, it signals strong control over its distribution channels. Brands with weak market power can’t set prices for retailers. If they try, they risk pushback or losing those retailers. Consistent MAP adherence among retailers shows that the manufacturer has a strong influence.
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